Update shared on12 Sep 2025
Fair value Increased 0.31%Both the consensus analyst price target and key financial metrics for Southwest Airlines have seen negligible changes, indicating continued stability in fundamentals, with the fair value price target edged slightly higher to $32.16.
What's in the News
- Southwest is expanding routes aggressively for 2026, launching new destinations including Santa Rosa, CA; Knoxville, TN; St. Thomas (USVI); and St. Maarten, with additional routes and increased connections through Denver, Burbank, San Diego, and Baltimore.
- A major interline agreement with EVA Air will enable seamless bookings and baggage transfers, providing access to over 100 U.S. destinations for EVA Air passengers and expanding Southwest's transpacific reach.
- Assigned and premium seating is being introduced for flights from January 27, 2026, marking a shift from open seating, alongside new fare bundles and a reconfigured fleet with extra legroom.
- New partnerships are enhancing customer experience, including free unlimited WiFi for Rapid Rewards members in partnership with T-Mobile and Peet’s Coffee as the official inflight coffee provider.
- Completed $2.36 billion in share repurchases (12.6% of shares), but Q2 2025 operating results showed declining passenger volumes and load factors; full-year EBIT is forecasted at $600–800 million.
Valuation Changes
Summary of Valuation Changes for Southwest Airlines
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $32.06 to $32.16.
- The Future P/E for Southwest Airlines remained effectively unchanged, moving only marginally from 9.52x to 9.57x.
- The Net Profit Margin for Southwest Airlines remained effectively unchanged, moving only marginally from 5.86% to 5.85%.
Disclaimer
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